Indian equity benchmarks continued to face volatility during early afternoon session, as continued hostilities between the United States and Iran kept oil prices elevated. Traders got cautious, after the United States Trade Representative (USTR) has concluded investigations against 60 economies, including India, regarding measures of these economies to prevent the import of goods. As a result, the USTR has proposed imposing additional tariffs on imports from the 60 economies under Section 301 of the U.S. Trade Act of 1974. India remains engaged with the U.S. on the matter as a part of Section 301 proceedings. However, losses were limited in the markets after Israel and Lebanon agreed to a ceasefire following negotiation in Washington.
On the global front, all Asian markets were trading lower, on spiking crude oil prices after new attacks in the Middle East stalled the signing of a U.S.-Iran peace agreement, delaying the reopening of the Strait of Hormuz, a critical waterway for the global energy market and trade.
The BSE Sensex is currently trading at 74296.23, down by 49.94 points or 0.07% after trading in a range of 73807.30 and 74544.24. There were 12 stocks advancing against 18 stocks declining on the index.
The top gaining sectoral indices on the BSE were Capital Goods up by 1.74%, Industrials up by 1.26%, Consumer Durables up by 1.21%, Telecom up by 0.93% and Power up by 0.88%, while IT down by 0.69%, Metal down by 0.64%, TECK down by 0.59%, Basic Materials down by 0.29% and Utilities down by 0.07% were the top losing indices on BSE.
The top gainers on the Sensex were Eternal up by 2.83%, Titan up by 1.24%, ITC up by 1.16%, Maruti Suzuki up by 0.97% and ICICI Bank up by 0.80%. On the flip side, Trent down by 1.98%, Infosys down by 1.82%, HCL Tech. down by 1.13%, Power Grid down by 1.02% and Reliance Industries down by 0.89% were the top losers.
Meanwhile, with an aim to provide cushion against challenges posed by West Asia conflict, the government of India has cleared a one-time budgetary support of Rs 10,000 crore for oil marketing companies (OMCs) to provide aviation turbine fuel (ATF) price stabilization to Indian airlines for domestic and international operations. Union Minister of Information and Broadcasting (I&B) Ashwini Vaishnaw has said that the budgetary support will help airlines in the backdrop of a rise in prices of ATF due to the conflict and closure of airspace by Pakistan for Indian airlines.
The corpus will compensate OMCs for losses arising from elevated international ATF prices whenever the prevailing Import Parity Price exceeds the benchmark price determined under the approved mechanism. The differential amount shall be recovered from OMCs when international ATF prices get moderated and the amount shall be returned to the Consolidated Fund of India. The arrangement shall continue until the entire support amount is fully recovered and settled.
Moreover, the mechanism reduces airlines’ exposure to sudden fuel price spikes by providing greater predictability in fuel costs by adopting a fixed-price arrangement for domestic and international operations. The measure will also help protect and sustain domestic and international air connectivity, ensuring continuity of air services. Besides, the arrangement will support continued air connectivity to remote, regional, Tier-II and Tier-III cities, promoting balanced regional development and inclusive growth.
The CNX Nifty is currently trading at 23385.35, down by 20.25 points or 0.09% after trading in a range of 23247.30 and 23462.30. There were 22 stocks advancing against 28 stocks declining on the index.
The top gainers on Nifty were Eternal up by 2.98%, Coal India up by 1.96%, Cipla up by 1.33%, Adani Enterprises up by 1.19% and Titan up by 1.13%. On the flip side, Trent down by 2.11%, Infosys down by 1.92%, HCL Tech. down by 1.22%, Power Grid down by 1.00% and Reliance Industries down by 0.92% were the top losers.
All Asian markets were trading lower; Jakarta Composite plunged 208.3 points or 3.63% to 5,732.77, KOSPI dropped 162.08 points or 1.88% to 8,639.41, Taiwan Weighted lost 781.7 points or 1.71% to 45,677.46, Hang Seng declined 383.21 points or 1.52% to 25,250.00, Nikkei 225 slipped 973.13 points or 1.44% to 67,429.00, Straits Times fell 48.49 points or 0.95% to 5,089.75, and Shanghai Composite weakened 26.19 points or 0.65% to 4,057.78.
